Proper money management is important for us all, but especially single parents, who are often supporting their family on one income where every penny matters. The key to financial success and good money management is making changes now, even if they are small, because these realistic changes can lead to long-term financial stability.
Good money management skills now, including making just small changes in your saving and spending habits, can make a big difference when it comes to finances. Here are some money management tips and habits for single parents to help you stay on track with your finances now so you can create a bright financial future for your family.
Create a Realistic Budget
One of the first steps to proper money management is creating and sticking to a realistic budget that works for your family. Having a budget to follow allows you to track your income and expenses so you will know exactly what your monthly money is allotted for. Staying on budget will allow you to know exactly how you spend your money and will result in you having the funds needed to support your family.
Build an Emergency Fund
In addition to your checking account, it is important for single parents to build an emergency fund with at least three to six months of living expenses. Having a separate savings cushion you can fall back when an unexpected financial issue arises is crucial for your family. Consider having automatic deposits made directly from your paycheck to your savings account every payday, even if it is a small amount because it all adds up and leaves you financially prepared for emergencies.
Use Financial Counseling and Online Resources
It is always a good idea to seek professional financial help, including free tools to assist you in planning, budgeting, or managing debt when available. Contact MPCU today for resources.
Set Clear Financial Goals
Setting short-term and long-term goals and having a plan in place to help you achieve them is important for proper money management for single parents. These financial goals might include saving for a home of your own or planning for your child’s education and should include the creation of a will and also an estate plan so that you will know the future of your children is secure. Setting clear financial goals now is the key to a successful financial future for you and your children.
Smart Lifestyle Choices
Staying on budget as a single parent can be a struggle, but making smart lifestyle choices is a good place to start. Finding innovative ways to cut everyday costs and stretch the budget is key. Consider meal planning and cooking at home versus takeout, shopping for secondhand items when available, using available community resources to help, and prioritizing the essential needs of your family when choosing how to spend your money.
Responsible Use of Credit
Credit is a great resource when used wisely. It is important to build and maintain a good credit score to ensure your family has everything they need. Be aware, however, of debt traps which occur when credit cards are used recklessly. Instead, try to avoid credit card use, especially if the interest rate is high, but if necessary, pay off balances each month when you can and work hard to build and protect your credit score.
Build Consistent Habits
The key to proper money management and a successful financial future is creating small, repeatable habits that help you stay on track. From good budgeting and tracking spending to making adjustments that align with your financial goals and seeking professional financial advice from Members Plus Credit Union, these good money habits will definitely pay off for you and your family now and in the future.
MPCU is Here to Help Single Parents Build Money Management Skills for Life
Utilizing these relatable tips from MPCU that can help single parents stay consistent with their finances is a smart money move. Even small steps now make a huge difference when it comes to saving for your family’s future. Remember to stay flexible and use trusted resources like MPCU to build a secure future for your family. Contact Members Plus today to take control of your finances and learn how you can build your money management skills with advice from our financial advisors as well as our free online resource tools.
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